It's $6 Million Each for Fannie and Freddie Chief Executives


'Tis the season to be greedy! Fannie Mae (FNM) CEO, Michael Williams, and Freddie Mac (FRE) CEO, Charles Halderman, will each receive $6 million in total compensation for 2009!

How would you like to work for a company that will guarantee every single loss you have. The U.S. Treasury said that they would absorb all losses for Fannie and Freddie for the next three years, if necessary.

Let's flashback to the the bailout days of 2008. U.S. Treasury Secretary Geithner announces that Fannie and Freddie will be each be bailed out to the tune of $200 billion. The two companies were seized by the government in September 2008 and put under the conservatorship of the regulator.

Fannie and Freddie have been sinking deeper in 2009. So what does the government do? Why it just guarantees more losses going into 2012.

So, now you decide to become CEO of Freddie and Fannie. No matter how much you lose, not to worry. The government will pick up the tab. You then beg on bended knee for a measly $6 million! And guess what? The regulator says: "Why sure, we can do that." And you fall into the biggest sweetheart deal of the century.

By any measure of common sense, something is wrong with this picture. We have 17 million unemployed and here's these two guys each pulling $6 million from the government. Why didn't the regulator force them to follow the CEO of Morgan Stanley (MS)? CEO John Mack took no bonus this year!

Let's close this holiday with required reading for all regulators, Treasury Secretary Geithner and Ben Bernanke. It is A Christmas Carol by Charles Dickens!

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